A Coffee Shop Chain Opens Across the Street from a Locally

Multiple Choice

A coffee shop chain opens across the street from a locally owned coffee shop.The base expenses for coffee and pastries are similar.However, the chain has corporate backing for support and therefore makes a decision to radically lower prices.Thus, it succeeds in attracting customers to its facility and eventually drives the local competitor out of business.This is an example of:

A) price fixing.
B) price discrimination.
C) predatory pricing.
D) referral selling.
E) resale price maintenance.